U.S. officials weighed possible Intel, GlobalFoundries deal, Bloomberg says

An idea that has gotten some attention from senior government officials is a possible deal between Intel (INTC) and GlobalFoundries (GFS), Mackenzie Hawkins of Bloomberg report, citing people familiar with the conversations. Some officials think GlobalFoundries could be a “compelling partner” because it’s already a trusted Pentagon supplier, the people said, and Intel has a $3B agreement to make chips for the military, Bloomberg says. GlobalFoundries is also the only other major chip foundry based in the U.S., so the result would be one American company, it adds. However, a potential hitch is Mubadala Investment, the investment arm of the Abu Dhabi government, which owns about 80% of GlobalFoundries. While the idea has come up in multiple meetings between government and GlobalFoundries officials over the past several months, plans haven’t progressed much past a thought exercise, sources told Bloomberg.